Letter to Secretary Hegseth raises concerns about unqualified providers, opaque contracting practices and risks to the defense supply chain
Washington – The American Trucking Associations today called on Secretary of War Pete Hegseth to strengthen oversight of the military freight transportation system and ensure that sensitive, taxpayer-funded shipments are entrusted only to properly vetted, qualified and compliant motor carriers.
In a letter sent today, ATA Chief Advocacy and Public Affairs Officer Henry Hanscom warned that weaknesses in the current system could jeopardize highway safety, operational security, military readiness and the integrity of the defense supply chain.
“Military readiness depends on a secure and reliable transportation network,” Hanscom said. “When military freight is awarded to providers that lack proper authority, insurance, equipment or compliance capabilities, the consequences extend far beyond contracting inefficiencies. They create risks for sensitive cargo, service members, the traveling public and taxpayers.”
ATA members have provided information to U.S. Army Transportation Command indicating that some military shipments have been awarded to service providers that lacked valid USDOT operating authority or required insurance, did not appear capable of meeting basic shipment requirements, or possessed little to no apparent asset capacity. Members also identified instances in which shipments appeared to be awarded outside normal competitive processes or manually routed around the Global Freight Management system.
A review conducted by ATA members of activity at 12 locations over a 90-day period in 2024 identified more than $20 million in shipments they believe may have been improperly awarded. Approximately 80% of the shipments reviewed at those locations appeared to have been mishandled or awarded in a manner inconsistent with longstanding Department policy.
ATA members have also raised concerns about military freight being awarded at rates substantially higher than those offered by compliant, asset-based carriers, including awards involving service providers affiliated with individuals previously convicted of federal fraud and public corruption offenses.
“At a time when American forces are deployed across active operational theaters around the world, the security and resilience of our military freight network cannot be taken for granted,” Hanscom said. “The Department has an opportunity to protect sensitive cargo, strengthen military readiness and ensure taxpayer-funded freight is awarded through fair, transparent and secure processes.”
The letter urges the Department to build on trucking enforcement efforts underway at the U.S. Department of Transportation and the U.S. Department of Homeland Security by requiring military freight providers to maintain appropriate operating authority, insurance, safety compliance and transportation capabilities.
ATA also expressed support for provisions included in the Fiscal Year 2026 National Defense Authorization Act intended to strengthen compliance, improve reporting of potential violations, clarify accountability mechanisms, audit the Freight Carrier Registration Program and require an Inspector General review.
“ATA is not simply identifying a problem. We are offering to help solve it,” Hanscom said. “Our members stand ready to work with Secretary Hegseth and his team to improve oversight, close loopholes and restore confidence in the military freight transportation system.”
A copy of the letter can be read here.